The case was brought by Suniva and SolarWorld Americas, which are majority-owned by overseas businesses and face financial troubles.

They say more than two dozen US solar panel manufacturing operations have stopped in recent years as imports surged.

Attorney Timothy Brightbill, who represented SolarWorld, called the decision a “win for American manufacturing” and the solar industry.

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SolarWorld employs about 300 people in Oregon, down from 1,300 at the peak, but the firm is hopeful this decision will help the business return to growth, he said.

“In order to have a strong solar industry, we need to have manufacturing in America as a key component,” he said.

A ‘shakedown’?

The US solar industry employs about 260,000 people, according to the Solar Energy Industries Association.

The organisation’s president and chief executive, Abigail Ross Hopper, said the trade commission’s decision was “disappointing”.

She criticised the tariffs proposed by Suniva as relief, arguing that they would increase prices and drive many other solar energy companies out of business.

The US has already imposed tariffs on Chinese solar panels, which led to increased imports from other countries. A remedy in this case would apply to all countries.

“As the remedy phase moves forward, I am determined to reach a conclusion that will protect the solar industry, our workers and the American public from what amounts to a shakedown by these two companies,” Ms Hopper said.